Morgan Stanley (NYSE:MS) profit jumps 10%

Morgan Stanley (NYSE:MS) stock rose 3.76% (As on Jan 20, 11:29:31 AM UTC-4, Source: Google Finance) after the company reported a 10% jump in fourth-quarter profit as the Wall Street investment bank capitalized on a boom in mergers and acquisitions and generated robust fees from advising on deals. Profit rose to $3.59 billion, in the quarter ended December 31, from $3.27 billion, a year earlier. Equities-trading revenue advanced 13%, driven by a one-time $225 million gain on an investment. That compared with analysts’ estimates for little change versus a year earlier. Fixed-income revenue declined 31%.

Moreover, Institutional Securities reported net revenues for the current quarter of $6.7 billion compared with $7.0 billion a year ago. Pre-tax income was $3.0 billion compared with $3.2 billion a year ago. Investment Banking revenues up 6% from a year ago as advisory revenues increased from a year ago driven by higher completed M&A transactions, equity underwriting revenues decreased from a year ago due to declines in follow-on offerings and blocks, partially offset by higher revenues from private placements and fixed income underwriting revenues increased from a year ago driven by higher securitized products and non-investment grade issuances. Wealth Management reported net revenues for the current quarter of $6.3 billion compared with $5.7 billion a year ago. Asset management revenues increased from a year ago reflecting higher asset levels driven by market appreciation and strong positive fee-based flows.  Transactional revenues were essentially unchanged excluding the impact of mark-to-market gains on investments associated with certain employee deferred compensation plans. Net interest income increased from a year ago primarily driven by strong growth in bank lending and higher brokerage sweep deposits. Investment Management reported net revenues of $1.8 billion compared with $1.1 billion a year ago. Asset management and related fees increased from a year ago driven by the Eaton Vance acquisition, higher performance fees, and higher average AUM.

MS in the fourth quarter of FY 21 has reported the adjusted earnings per share of $2.01, beating the analysts’ estimates for the adjusted earnings per share of $1.91, according to IBES data from Refinitiv. The company had reported the adjusted revenue of $14.52 billion in the fourth quarter of FY 21, compared with $13.59 billion in the year-ago period.

Additionally, the company repurchased $2.8 billion of its outstanding common stock during the quarter as part of its Share Repurchase Program. MS has declared a $0.70 quarterly dividend per share, payable on February 15, 2022 to common shareholders of record on January 31, 2022.

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